Cryptocurrency has been the main topic of conversation over the past few weeks and rightfully so, but why is this? In this article, we are going to break down the past few months positives, negatives and anything worth covering of what happened in the cryptocurrency world.
Cryptocurrency – What Is Happening?
To say it’s been a pandemic, all predictions were around that Cryptocurrency would drop in price. It makes sense since people would need this money to help survive during the COVID-19 pandemic, but others saw this as an opportunity to invest.
As the deadly virus that is Coronavirus hit more places, the prices for Ethereum and Bitcoin in particular dropped significantly, this is where people second guess themselves and pulled out or abstained. As you can picture, this brings another opportunity for people to re-invest in digital money.
So what happened in the past few months, and why has cryptocurrency become a popular topic of conversation?
June & July 2020
During the first wave of the pandemic during March time, prices of the majority of Crypto, like Ethereum and Bitcoin, according to coindesk, significantly dropped in price. Over the course of April and May as people recovered from the virus, so did the value of cryptocurrency as people saw this to be the best opportunity for reinvestment.
Since then, June and July saw its first stagnation since the slow climb back to its original value. People began questioning if the price would increase since it’s not often you see two entire months of it, on average, being the same price. Funnily enough, whilst this happened to Ethereum, Bitcoin was slightly different but in a way that was decreasing slowly over time.
Suddenly, towards the end of July, people’s doubts were cleared. Ethereum over 7 days saw an increase of an extra $100, a 39% increase in value whilst Bitcoin gradually increased in value until a sudden spike which saw an increase of $2,200, a 23% increase.
After the sudden spike that shocked many investors, people were quick to realise that this could potentially be bigger with some time, and they were right. Whilst the top two cryptocurrencies Ethereum and Bitcoin stayed the same price from start and end of August, there was a spike in the middle.
Whilst the spike wasn’t as significant as others, it gave the sign of hope that it will continue going up over time. Ethereum saw an increase of 14%, bringing the price up to $440 from $385 whilst Bitcoin went through their own spike of a 9% increase from $11,350 to $12,400.
Whilst everyone seemed distracted with Ethereum and Bitcoin, people were blinded, and forgot that they weren’t the only types of cryptocurrency. Chainlink, another form of digital money, has seen it’s first steps in becoming a potential competitor for ETH and BTC.
Chainlink was on a slow increase over the course of 2020 until August, when it spiked during the same time Ethereum and Bitcoin did. Whilst Chainlink’s value is much lower than the top two, it had a massive increase of 100% from $9.50 to $19.
So, since this has all happened, what are the conditions like in September for Cryptocurrency? Did it crash and every investor was at a loss, or did it challenge Coronavirus and win convincingly?
The start of September was not a good sight for any investors that recently put money in during the past week. September saw a fair decline in the prices for Bitcoin and Chainlink, however, Ethereum was a mixed result.
Ethereum was one of the only cryptocurrencies that saw an out of the blue spike out of nowhere, but sadly was short-lived. A reason could be because of social media exploding with talks as many investors ran to their computers to place an investment.
After 4 of Ethereum constantly going up with people getting excited, it only took 3 days to return to its original price, but with a fair decrease. Currently, Ethereum has recovered back to its original price and has been stagnant since, however, it has not been long since that spike, who knows, it may increase or it could crash.
Since the small decline of Bitcoin, the past few days we’ve seen an increase so far in September.
Whilst Chainlink is fairly new to it’s increase in value, I think it has the possibility of being a competitor to BTC and ETH, but that’s just my 2 cents (no pun intended).
Written By: Christian Ellul